Global Franchise 9.3

38 GLOBAL FRANCHISE Issue 9.3 The latest expansions, mergers and trends transforming the global franchise landscape WORLDOF FRANCHISE 1 MONTEVIDEO, URAGUAY Arcos Dorados Holdings Inc., Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, has renewed its 20-year master franchise agreement (MFA) with McDonald’s, effective January 1, 2025. The new deal includes a royalty fee of 6% on gross sales for the first 10 years, rising incrementally in later years.With 90- 100 new restaurants expected to open in 2025, the renewal supports growth in the 20 countries Arcos Dorados operates across Latin America and the Caribbean. Executive ChairmanWoods Staton expressed pride in the partnership, aiming for continued market leadership. We are proud McDonald’s franchisees and, guided by a clear purpose, we have generated strong, long-term shareholder value and made a meaningful, positive impact on the communities where we operate,” he said in a statement. The renewal caused a 3% rise in the franchisee’s stock price, currently valued at $1.8 billion. Last year, McDonald’s announced plans to target a 50,000-unit global footprint by 2027, or about 10,000 more locations than it has today. If this goal comes to fruition, it will mark the fastest period of growth in the company’s 69-year history. 2 FLORIDA, USA PizzaExpress, a London-born chain known for its “Britalian” pizza, is set to enter the U.S. market next year, debuting in Florida in partnership with multi-brand franchisee Purple Square. The 60-year-old pizza concept has nearly 360 units across the U.K. and Ireland, as well as another 110 across 12 other international markets, including Asia and the Middle East, and is targeting 1000 units globally by 2030. “This is a full-circle moment to bring a brand I’ve loved and grown up with in London to a new market eager for an elevated pizza experience,” saidVik Patel, Purple Square’s leader. In Europe, PizzaExpress has six live music venues, where artists like Ed Sheeran, Amy Winehouse and Norah Jones have performed. The brand’s U.S. locations will feature live music on a smaller scale, and dining for “affordable everyday celebrations.” 3 NEWYORK, USA Crunch Fitness, a global gym chain with 2.5 million members, could soon be sold for over $1.5 billion including debt, with buyout firmTPG reportedly exploring the sale and investment bank Jefferies managing the process. Crunch’s valuation is based on 15 times its annual EBITDA of $100 million, reflecting the strong post-pandemic demand for fitness services. Crunch has drawn interest from other private equity firms as potential acquirers in the past, but this transaction, expected to begin in 2025, could set a significant precedent in the fitness sector with TPG aiming to maximize returns and triggering further M&A activity in 2025. “We are proud McDonald’s franchisees guided by a clear purpose in the communities where we operate” 1 2 3